Location: A key priority in both Commercial and Residential Real estate

Commercial and Residential Real Estate may be different, but they have one thing in common. Location is a key component. Residential property buyers may focus more on comfort, the community and the convenience of a property however commercial property buyers tend to have a focus of profitability, visibility, and access.

Nevertheless, both property type owners want something that is hard to replicate which is location.

Location sets the base for the value that is in real state. It not only determines the quality of life you get on the property that you purchase but it also has influencing factors like convenience in the area, which you will begin to appreciate. This is why location is a primary factor that decides whether investors and buyers would be interested.

It is not only the design of a building that creates the desirability of a place and what drives the pricing factor, but the location can drive up the desirability as well. A price tag on a Miami beachfront condo and a Manhattan loft can be justified by their spot and surroundings, so keep this In mind as you read on.

Premium locations are about exclusivity, job availability in the area and have a lot to do with the culture in the nearby community. In addition to this, there are prestige names on some properties that make them desirable. Whether this is in a busy neighborhood or whether it is the appeal of a scenic and safe neighborhood. Usually accompanied by stellar infrastructure that generally attracts a lot of buyers. This increase in demand increases the investment potential thus reinforcing location as the catalyst of prestige and profitability.

Location has a deciding factor on the performance of a commercial real estate property. If you are looking for a property in an area that will do well, you will likely want to look for a location that is in a vibrant and accessible area with high foot traffic as a properties visibility usually translates into its profit.

The area code for a property can even improve its brand identity which in turn will attract consumers creating a sustainable growth. However, a poor area will limit the success of a business regardless of the business model and potential product.

There are ways to look into locations that will suit your needs regardless of whether you are a commercial or Residential property owner. Advanced technology now lets you target high-preforming commercial spaces with precision. CRE products for instance assist users in identifying, analyzing and comparing opportunities across the market without you having to do hours of research on it.

Using date driven insights and localized expertise these technologies simplify processes and help you find commercial properties that align with your strategic objectives.

The following factors usually impact the value of commercial real estate; summarized in accessibility, demographics and infrastructure. Accessibility makes it easier for your clients, employees and suppliers to reach the location, which makes it desirable.  Demographics is in regard to the nearby population density which will directly impact the income levels. Infrastructure is where the nearby quality of the roads comes into play, the parking space availability and whether there is nearby transportation close by. 

The same applies with residential prospects. Buyers or renters will look for the value in the area. Is it close to a school? Are the levels of crime at a reasonable level? Are there food shops close by? This will be relevant if a family is looking into a property as they tend to look for a nearby school, park and will be looking for a property near a reliable route/commute to work.

Profit per square foot also comes into play with commercial real estate, meanwhile residential buyers are looking for more emotional satisfaction. A quality neighborhood is not as easy to find as you may realize, and it can be someone way to help show their identity rather than the overall potential of a successful investment.

The basic factors that elevate residential property prices include:

• Neighborhood Reputation: Long-term homeowners would like to live in regions that have minimal crime rates and vibrant community networks.

• Facilities: Supermarkets, hospitals, and sporting facilities enhance the quality of daily living.

• Transportation: Locations with quick access to transit will simplify day-to-day activities and could have higher resale value.

Although very different fields of real estate, they both heavily rely on location but success is benchmarked very differently. Commercial properties will be measured on return on investment and also tenant retention. Whilst residential properties depend on comfort, demand and community vibrancy.

Regardless, the long-term value is dependent on the same basic premise: a location that meets human and market needs.

Desirable locations in both categories of real estate have some common factors:

• Economic Growth: Growing employment opportunities will attract both residents and businesses.

• Development of Infrastructure: Convenience is increased with roads, transit, and utilities in place.

• Environmental Safety: Value is sustained with clean and safe environments.

• Cultural Ethos: The region's character or lifestyle attributes will elevate prestige.

Cities like Austin, Miami, and Seattle that successfully juggle these aspects are thriving in both the commercial and residential sectors. Investors know that whenever people want to live, businesses want to operate.

Location is the key to the success of a property. Whether you are looking for yourself or a business location all these factors need to be considered. The location is the underlying factor that creates the desire for the property. At the end of the day no one wants beautifully designed apartment building in the middle of a forest that is not accessible by road.